Canadian corporate tax calculator
Federal corporate tax is 15% of taxable income after the abatement and general reduction, or 9% on the first $500,000 for a Canadian-controlled private corporation claiming the small business deduction. Provinces and territories add their own lower and higher rates.
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Informational estimate, not tax advice. SuperBooks does not prepare or file tax forms.
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The formula
Federal = 9% × income up to $500,000 + 15% × the rest (or 15% on all of it without the small business deduction). Provincial = the lower rate up to the province's business limit + the higher rate on the rest. Rates are those in force on the date checked; a tax year that spans a rate change prorates by days. The business limit sharing between associated corporations and its reduction for passive income are not included.
Provincial and territorial rates
| Province or territory | Lower rate | Higher rate | Business limit |
|---|---|---|---|
| British Columbia | 2% | 12% | $500,000 |
| Manitoba | 0% | 12% | $500,000 |
| New Brunswick | 2.5% | 14% | $500,000 |
| Newfoundland and Labrador | 2% | 15% | $500,000 |
| Northwest Territories | 2% | 11.5% | $500,000 |
| Nova Scotia | 1.5% | 14% | $700,000 |
| Nunavut | 3% | 12% | $500,000 |
| Ontario | 2.2% | 11.5% | $500,000 |
| Prince Edward Island | 1% | 15% | $600,000 |
| Saskatchewan | 1% | 12% | $600,000 |
| Yukon | 0% | 12% | $500,000 |
Sources
- Canada Revenue Agency, Corporation tax rates
- Canada Revenue Agency, T2 guide chapter 4: the $500,000 business limit
Last checked 21 October 2026.
Run it with curl
curl "https://app.superbooks.io/api/tools/canada-corporate-tax?income=300000"Questions
- What is the federal corporate tax rate in Canada?
- The basic rate is 38%, 28% after the federal tax abatement, and 15% after the general tax reduction. A Canadian-controlled private corporation claiming the small business deduction pays 9% on income up to the $500,000 business limit.
- Why are Quebec and Alberta not included?
- They do not have corporation tax collection agreements with the CRA, so the CRA's table of provincial rates, which this calculator uses, does not list them.
- Did Ontario's small business rate change in 2026?
- Yes. The CRA lists Ontario's lower rate as 2.2%, reduced from 3.2% on 1 July 2026. Newfoundland and Labrador's lower rate went from 2.5% to 2% on 1 January 2026. For a tax year that spans a change, the CRA prorates the two rates by the number of days each applied.